CZK: Koruna Firms Alongside CE3 Peers, Hits New Session High
Feb-06 14:51
CZK is trading at a new session high following the CNB press conference, though given both HUF and PLN have also reached new daily highs in recent trade, it appears that CE3 FX is moving primarily in tandem with the slight fade in the greenback. For EURCZK, we flag the 25.00 handle as the next notable support level.
- While the unanimous vote for a cut could be interpreted as dovish given expectations of a more hawkish split following this morning's stronger-than-expected CPI data, Governor Ales Michl reiterated that Czech central bankers will be very careful about further monetary easing after they delivered what he described as a “hawkish” cut.
- Michl said rates will probably remain above the trajectory implied in the central bank’s fresh baseline forecast and that he’d prefer if long-term rates didn’t decline much further. The Governor pointed to wage growth and budget deficits as inflationary risks, while weak economic performance in Germany poses a downside risk to inflation.
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EURIBOR OPTIONS: Upside call spread
Jan-07 14:43
Euribor upside, looking for deeper cut into the end of the Year.
- ERZ5 99.00/100.00cs, bought for 2.75 in 6k.
EGB SYNDICATION: Slovenia 30-year: Allocations out
Jan-07 14:39
- Size set earlier: E1bln (MNI expected E1.0-1.5bln)
- Spread set earlier at MS+128bp (Guidance was MS+140bps area then MS+135bps area)
- Books in excess of E2.1bln (inc E410mln JLM interest)
- Maturity Date: 14 April 2055
- HR: 93% vs 2.50% Aug-54 Bund
- Settlement Date: 14 January 2025 (T+5)
- Joint Bookrunners: Deutsche Bank, Erste Group, Goldman Sachs Bank Europe SE, HSBC, J.P. Morgan (B&D) and OTP Banka Slovenia
- ISIN: SI0002104873
- Timing: Pricing to follow
From market source
EGB SYNDICATION: Belgium 10-year: Allocations out
Jan-07 14:30
- Size set earlier E7bln (in line with MNI expectations and same as 2023/24 10-year syndis)
- Spread set earlier at MS+66bps (guidance was +68bps area)
- Books closed in excess of E89bln (ex JLM interest)
- Maturity: 22-June-2035
- HR 103% vs 2.60% Aug-34 Bund
- Settlement: 14-January-2025 (T+5)
- Coupon: Annual ACT/ACT, short first to 22-June-2025
- ISIN: BE0000363722
- Bookrunners: BNPP (DM/B&D) / CACIB / HSBC / JPM / MS
- Timing: Allocations out, hedge deadline 14:50GMT / 15:50CET. Pricing to follow
From market source
